Protocol - Protocol - Turkmenistan

PROTOCOL At the signing of the Convention between the Government of the Republic of India and the Government of Turkmenistan for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income and on capital, the undersigned have agreed the following shall form an integral part of the Convention. With reference of Article 7: In respect of paragraphs 1 and 2 of Article 7, where an enterprise of one of the Contracting States sells goods or merchandise or carries on business in the other Contracting State through a permanent establishment situated therein, the profits of that permanent establishment shall not be determined on the basis of the total amount received by the enterprise, but shall be determined only on the basis of the remuneration which is attributed to the actual activity of the permanent establishment for such sales or business. For instance, in the case of contracts for the survey, supply, installation or construction of industrial, commercial or scientific equipment or premises, or of public works, when the enterprise has a permanent establishment, the profits of such permanent establishment shall not be determined on the basis of the total amount of the contract, but shall be determined only on the basis of that part of the contract which is effectively carried out by the permanent establishment in the Contracting State where the permanent establishment is situated. IN WITNESS WHEREOF, the undersigned, being duly authorised thereto, have signed this Protocol. Done in duplicate at New Delhi this 25th day of February, 1997 in Turkmen, Hindi and English languages, all texts being equally authentic. In case of divergence between the texts, the English text shall prevail.